Manila Water to acquire 49% of Vietnam firm

MANILA, Philippines - East Zone water concessionaire Manila Water Co. Inc expects to complete the acquisition of 49 percent of Vietnamese firm Kenh Dong Water Supply Joint Stock Co within the quarter.

“The one pending for financial closing is the Kenh Dong Water treatment plant. But we expect it in the next few weeks, very close to closing (of the second quarter),” said Manila Water East Zone Business Operations director Ferdinand Dela Cruz.

Vietnamese infrastructure developer Ho Chi Minh City Investment Joint Stock Co. (CII) has awarded Manila Water the right to purchase 10 percent of its stock and 49-percent interest in Kenh Dong Water Supply Joint Stock Co.

Dela Cruz said Manila Water invested $50 million in Kenh Dong.

Manila Water’s parent firm, Ayala Corp. is optimistic of Vietnam’s positive economic outlook. High demand for infrastructure in the region is expected to give the conglomerate access to investment opportunities in the sector.

CII is a leading Vietnamese infrastructure company withinterests in with water treatment plants and toll roads in Ho Chi Minh. It also holds a stake in Thu Duc Water BOO Corp., a water treatment company now 49 percent owned by Manila Water.

Manila Water acquired a 49-percent interest in Thu Duc Water in December last year.

The billed water volume for the Thu Duc water treatment plant had already been folded into the first quarter income of the company.

Manila Water acquired a 49-percent interest in Thu Duc Water in December last year.

Manila Water saw its net income rise 64 percent in the first quarter from a year ago amid higher revenues from its businesses.

The firm’s financial statement disclosed to the local bourse showed that its unaudited net income climbed to P1.34 billion in the first quarter of this year from P816 million in the same period last year.

The Ayala-led firm’s revenues went up 28 percent to P3.42 billion for the period from the previous year’s P2.67 billion.

Revenues from the East Zone business reached P3.26 billion, higher than the P2.61 billion a year ago.